The accuracy of profit forecast of initial public offer (IPOS) for the companies registered in Kuching, Sarawak/ Siten Siam

This study examines the accuracy of the profit forecast of intial public offers (IPOs) of the Sarawak-based companies up to the period 31 December, 1995. It also assesses and compares the consistency and reliability of Sarawak-based companies forecast with other studies. There are very few studies done on the profit forecast ofIPOs. Their results indicate that the forecast of IPOs varies in different exchanges of the countries for various reasons. In Malaysia, Shamsher et al (1994) and Isa et al (1995) however, found that a consistent result of profit forecast predictions are generally reliable and falls within an acceptable limit of 10%.